The USDCAD market has been retracing higher price levels for an extended period. This seems to be a result of the US dollar being stronger than its Canadian counterpart ever since. However, price action saw a mild result as a result of the cautious mood ahead of the Fed’s monetary policy statement.
Key Price Levels:
Resistance Levels: 1.4500, 1.4600, 1.4700
Support Levels: 1.4400, 1.4300, 1.4200
USDCAD Sees a Rejection
Price action has been correcting upwards for a long time in the USDCAD daily market. Although there have been a few stops along the way, the market has been bouncing right back off the 20-day Moving Average (MA) line. This keeps the market in an uptrend since price action has been above all the MA curves.
The last price candle on the chart has, however, appeared bearish but with minimal effect on price movement. The price surge landed by the previous session would usually attract a rejection in the opposite direction. The Stochastic Relative Strength Index (Stochastic RSI) lines remain in the overbought region. However, the current downward retracement has resulted in a slight downward trajectory on the RSI.
USDCAD Bulls Are Re-entering
Following the downward rejection in the USDCAD market, it seems buyers are already using that as an entry point. This is revealed by the last price candle on the chart. By careful consideration, one could see that upside forces have the technical backing for a continued upside correction. The upside rebound has occurred above all the MA lines.
Although the Stochastic RSI leading line has a slight deflection, the indicator line maintains a general upward trajectory. Also, the lines of this indicator have already surpassed the 80-level of the indicator. Therefore, it seems very likely that upside forces continue to propel the market toward the 1.4500 threshold level.
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